Vic hospital budget up 5.1 per cent

The Victorian Government says funding for the state's hospitals and health services will increase by 5.1 per cent, or $607 million, in 2014-15.

Health Minister David Davis says total Victorian health spending in 2014-15 will be nearly $15 billion.

The aggregate figure takes in both state and federal funding allocated under an activity-based or "growth" model, where improved hospital performance triggers an increase in funding.

"That growth funding responds when the state puts more money in, and what I'm here to talk about today is the aggregate result of state and federal funding," Mr Davis told reporters in Melbourne on Sunday.

"Funding this year will grow by about 5.1 per cent and that will see $607 million in additional funding go into our hospitals and health services.

"This is significant growth underpinned by increased state funding, but also increased commonwealth funding."

Mr Davis said the increased commonwealth growth funding had partially offset losses to flow to Victorian health services from the de-funding of several major programs in the federal budget.